California Department of Social Services - State Hearings Division
Notes from the Training Bureau - October 17, 1995

Item 95-10-01I
CDHS ACWDL 95-22 -- April 3, 1995 (Synopsis): Business Property

Addresses exempt business property. Clarifies ACWDL 91-28.

Two issues are addressed: (1) the meaning of the term "self-support" and (2) plan for achieving self-support.

"The term self-support when used in ACWDL No. 91-28 means self-employment rather than just an arrangement which provides financial support, except when used to describe an approved plan for achieving self-support. This means that property which is used simply for investment purposes rather than for self-employment is not exempt. This could take the form of a former home which now is being rented out. The former home is not exempt as business property although it may be exempt as a principal residence in accordance with Title 22, California Code of Regulations, Section 50425(c). In order for any property to be exempt as business property (except property retained as part of an approved plan for achieving self-support), the applicant/beneficiary must provide verification of the existence of a business as indicated in ACWDL No. 91-28.

"Second, a plan for achieving self-support may provide for future training or the future establishment of a business. The property is not necessarily in current use. As long as individuals have an approved plan for achieving self-support from the county, the Department of Rehabilitation or the Supplemental Security Income (SSI) program, property that is included in that plan may be exempted. The plan, with documentation of its approval from the approving agency, must be provided as verification."